29th October 2024, Skopje – At today’s session, the Government adopted the 2025 Draft Budget, providing for stabilized public finance and economic growth, coupled by fiscal consolidation.
“We have provided more funds for capital expenditures and development, funds for timely payment of pensions and the increase thereof, as well as for higher wages in the education sector”, Minister of Finance, Gordana Dimitrieska-Kochoska pointed out at the conference, thereby presenting the 2025 Draft Budget.
“At today’s session, Government adopted the 2025 Draft Budget, thus laying the foundations for stabilized public finances and economic growth. The 2025 Budget incorporates policies and measures pertaining to fiscal consolidation and disciplined tax spending, while also those aimed at boosting the economic growth“, Minister said, thereby adding that economic growth is projected at 3.7%, with the budget deficit being forecasted at 4% and inflation projected at 2.2%.
As she stated, total budget revenues are projected in the amount of Denar 358.838 billion, being higher by 13% compared to this year. Increased revenues have resulted from the more efficient both collection thereof and fight against the informal economy.
Total expenditures are projected in the amount of Denar 400.2 billion or higher by 10% compared to this year, with the deficit being projected at 4% or Denar 41.350 billion in nominal terms, being lower by Denar 3.3 billion compared to this year.
“In a nutshell, we have managed to design a Budget that contributes to our country’s solid development. Capital expenditures are projected in the amount of Denar 50.65 billion, increasing by 13% or Denar 6 billion compared to this year’s Supplementary Budget. Its development is based exactly thereupon. In addition, the capital expenditures are higher than the nominal amount of the deficit. What matters the most is that we create solutions geared towards actual capital expenditure execution, as well as improving the state-of-the affairs inherited from the past. We will place our focus thereon, due to which policy-related changes have been made. Policy is aimed at supporting high-quality projects, which implementation requires a short timeframe, thus generating economic growth”, Minister of Finance underlined. She also stressed that the policies created in the Draft Budget are aimed at improving the living standard. Hence, Denar 105 billion has been provided for payment of the pensions, as well as their foreseen increase by Denar 2,500, being an increase by Denar 15 billion compared to the funds projected for this year. As regards wages budget position, Denar 48 billion has been provided for wage payment, additional Denar 2 billion has been provided as block grants, being intended for higher wages in the educational sector, along with support for the vulnerable categories, amounting to Denar 14.5 billion, being an increase by Denar 500 million, while also allocating funds for healthcare, being higher by Denar 5.2 billion or total of Denar 53.4 billion.
She also added that cuts have been made as regards non-productive expenditures, such as furniture and vehicles budget positions.
“Ongoing developments still entail making considerable savings, however, we will take prudent actions so as to allow the instructions to perform their competent activities on regular basis, while also providing opportunity for rendering high-quality services to the citizens and the businesses”, Minister said.
The 2025 Draft Budget will be submitted to the Parliament, for adoption.
